Choosing the right financial professional

Millions of Americans invest their money every day, and many investors choose to rely on investment professionals to give them financial advice.

The process of finding the right financial professional is a very personal decision that involves feeling comfortable talking about your financial information and goals with an outside financial adviser. Before choosing an investment professional, assess your finances and determine your short-term and long-term goals.

There are numerous types of financial professionals available including brokers, accountants, insurance agents, investment advisers and financial planners. Different investment professionals can provide a variety of options for investing. You should determine the type of professional you need depending on your individual financial goals.

Once you've selected a few possible investment professionals, it is important to verify the license of their firm or individual practice. Investors can check the backgrounds of brokerage firms, individual brokers and investment adviser firms through a free tool called BrokerCheck, which is offered by FINRA, the Financial Industry Regulatory Authority.

BrokerCheck gives you access to any information regarding past complaints or regulatory actions by securities regulators and enforcement authorities.

Investment advisers must also register with the Securities Exchange Commission or a state securities regulator. The SEC offers each firm's most recent registration document online through their Investment Adviser Public Disclosure website.

When verifying a registration, it is always a good idea to check with the Florida Office of Financial Regulation, www.flofr.com or call 487-9687, because we may have more information and will be happy to assist with questions.

Interviewing your potential financial professionals is just as important as verifying their license. It is essential to ask questions, such as, "What experience do you have working with people in my situation?", "How will you communicate investment performance results to me?" and "How often will you meet with me to review the performance results of my portfolio and changes in my personal finances?"

Getting to know who will be investing your money and how they work is key to determining who the best investment professional is for your financial needs.

Don't forget to discuss the fees and payment structure as well. There are several ways investment professionals are compensated, including a flat fee, hourly fee, percentage of the value of the assets they manage or commission on the products they sell.

Finally, be sure to read any written document or information completely, particularly before signing anything.

Remember, it is your money. Make sure you feel comfortable with the professional or the product before you invest. These tips will keep you informed so you can make the best financial decisions for your future.

Drew J. Breakspear is commissioner of the Florida Office of Financial Regulation.